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AI choice currency
Arthur Hayes, co-founder of BitMEX, said on his blog on the 7th, “Crypto asset (virtual currency) Bitcoin (BTC) will be the currency of choice for AI (artificial intelligence).” He expressed his opinion.
Hayes argues that the digitized and decentralized nature of bitcoin, its energy-linked value, provable scarcity, and persistence beyond human control make it an ideal candidate for AI. It states that it has currency characteristics that satisfy
His argument is based on the premise that AI “requires always-on, digitized and fully automated payment systems.” In order for AI to operate sustainably, it will be necessary to continuously pay for data processing and computing power.
In explaining why Bitcoin would be the best payment system for AI, Hayes pointed out the following points:
The ideal payment system for AI should be censorship-resistant, with clear and transparent rules. It is fundamentally impossible for AI to understand human law, and it is important to escape from off-platform risks and the opaque and arbitrary rules of the banking system.
Bitcoin is unique in that respect. It is permissionless (no permission), available to anyone, and difficult to shut down by governments. Also, the network rules are public and transparent to everyone. Hayes also explained that any rule change would require a majority of miners to agree.
Bitcoin’s censorship resistance stems from its ability to make public proposals to the entire network, followed by a majority vote. There is no entity that can unilaterally change the rules.
Other payment tools and assets, or even other cryptocurrencies, may find it difficult to meet the demands of AI. It is difficult to provide services 24 hours a day, 365 days a year with centrally managed payment services and cash. Also, cash- and gold-based stablecoins are at risk of being frozen or censored by the issuer.
Last year, there was a case in which US Circle, which received sanctions cooperation from the Ministry of Finance, froze USDC that passed through the transaction obfuscation tool “Tornado Cash”.
connection:U.S. Treasury Department sanctions cryptocurrency mixing company Tornado Cash
Similarities between Bitcoin and AI
Bitcoin and AI’s energy consumption are closely related, according to Hayes. Bitcoins are created through a “mining” process that uses large amounts of energy to perform sophisticated computations. AI systems also require large amounts of energy due to their advanced computation and data processing. This commonality ties Bitcoin directly to the energy cost of AI’s “food,” Hayes said.
He also mentions the scarcity of Bitcoin. Bitcoin is capped at 21 million BTC, which could increase its scarcity value over time. He points out that while the supply of gold on Earth is limited, it is inexhaustible on a broader cosmic scale. Fiat (cash) is far from scarcity as it can be freely issued by the government without issuance costs.
Ultimately, Hayes argues that trust in human-controlled financial institutions is unnecessary given the potential for AI to be autonomous. Bitcoin, which can continue to function independently of humans, would be the ideal choice.
connection:BlackRock CEO Says Bitcoin Is Global Asset, Praises Its Role As Digital Gold
The post Arthur Hayes: Bitcoin will be the preferred currency for AI appeared first on Our Bitcoin News.
English (US) ·